Anonymous wrote:400k combined. I make 200k, DH 185k. I got a 15k bonus. It is hard for me to imagine a 200k bonus!
Many executlve bonuses are structured as a percentage of base (up to 100%) and dependant on the company reaching a set of goals. So if your base is, say, $300 and your max bonus is 2/3 of base, and the company meets or exceeds all goals, you can earn a $200K bonus that year. But if you miss all goals you get $0. Sometimes the bonus is paid in stock, so on the day of award you are taxed at the value on the day of vesting, but if you hold the stock and it tanks, you could end up with a net negative. So, there are upsides and downsides. You can only rely on the base.